Since 1921 Belgium has had an economic union with Luxembourg - the
Belgium -Luxembourg Economic Union (BLEU). As members of the EU, with
the exception of agriculture, both Belgium and Luxembourg have
relatively open market economies. Although trade and investment figures
have traditionally been combined for the two countries, separate data
for Belgium was made available for the first time in 1998. Belgium
leaders over the years have invested considerable time and energy in the
EU integration process. Outside the EU the most important bilateral
relationship is with USA and countries of central Africa (its former
colonies). It pursues economic diplomacy with countries of Asia and
Middle East and North Africa.

Belgium's top four export markets in 2004 were all in the EU, with
Germany, France and the Netherlands ranking as Belgium's top three. The
BLEU is a major trade entrepot for the rest of Europe.

Belgium is located at the heart of one of the world's most highly
industrialized regions. The first country to undergo an industrial
revolution on the continent of Europe in the early 1800s, Belgium
developed an excellent transportation infrastructure of ports, canals,
railways, and highways to integrate its industry with that of its
neighbors. One of the founding members of the European Community (EC),
Belgium strongly supports deepening the powers of the present-day
European Union to integrate European economies.

With exports equivalent to about 69% of GDP (Euros 283 billion), Belgium
depends heavily on world trade. Belgium exports twice as much per capita
as Germany and five times as much as Japan. Belgium's trade advantages
are derived from its central geographic location, and a highly skilled,
multilingual, and productive work force.

The
Belgian industrial sector can be compared to a complex processing
machine: It imports 3 raw materials and semi-finished goods that are
further processed and re-exported. Except for its coal, which is no
longer economical to exploit, Belgium has virtually no natural
resources. Nonetheless, most traditional industrial sectors are
represented in the economy, including steel, textiles, refining,
chemicals, food processing, pharmaceuticals, automobiles, electronics,
and machinery fabrication. Despite the heavy industrial component,
services account for 74.6% of GDP. Agriculture accounts for only 1.4% of
the GDP.

Belgian Economy in the 20th Century:

Belgium is the 18th largest economy as per World Bank report of 2004.
For 200 years through World War I, French-speaking Wallonia was
a technically advanced, industrial region, while Dutch-speaking Flanders
was predominantly agricultural. This disparity began to fade during the
interwar period. As Belgium emerged from World War II with its
industrial infrastructure relatively undamaged, the stage was set for a
period of rapid development, particularly in Flanders. The postwar boom
years, enhanced by the establishment of the EU and NATO headquarters in
Brussels, contributed to the rapid expansion of light industry
throughout most of Flanders, particularly along a corridor stretching
between Brussels and Antwerp (now the second-largest port in Europe
after Rotterdam), where a major concentration of petrochemical
industries developed.

The
older, traditional industries of Wallonia, particularly steelmaking,
began to lose their competitive edge during this period, but the general
growth of world prosperity masked this deterioration until the 1973 and
1979 oil price shocks sent the economy into a period of prolonged
recession. In the 1980s and 1990s, the economic center of the country
continued to shift northward to Flanders. Today Flanders accounts for
80% of Belgian exports.

Euros 188.9 billion in 2004. Belgium is
the 9th largest importer in the world.

Likewise investment highlights:

Foreign investment contributed significantly to Belgian economic growth
in the 1960s. In particular, U.S. firms played a leading role in the
expansion of light industrial and petrochemical industries in the 1960s
and 1970s. The Belgian Government encourages new foreign investment as a
means to promote employment. With regional devolution, Flanders,
Brussels, and Wallonia are now courting potential foreign investors and
offer a host of incentives and benefits.

More than 1,400 U.S. firms invested over $24 billion in Belgium by 2001.
U.S. and other foreign companies in Belgium account for approximately
11% of the total work force, with the U.S. share at about 6%. U.S.
companies are heavily represented in chemical, automotive assembly, and
petroleum refining. A number of U.S. service industries followed in the
wake of these investments--banks, law firms, public relations,
accounting, and executive search firms. The resident American community
in Belgium now exceeds 20,000. Attracted by the EU 1992 single-market
program, many U.S. law firms and lawyers have settled in Brussels since
1989. Other foreign firms, particularly French ones, have invested
locally for the same reason. Belgium has the second highest level of
productivity per 4 worker in the world – second only to USA. Low cost
energy and highly developed transport sector is very important in
attracting investment. It has highest density of rail network in the
world, 2nd largest seaport in Europe (Anwerp), 2nd largest petrochemical
Centre, 5th largest Cargo airport in Europe.

Facts of particular historical and cultural significance in relations
between India

and (Belgium), including date of establishment of diplomatic relations:

India enjoys traditional, warm and friendly relations with Belgium.
Trade relations go back to the 17th century when ships sailed from
Ostend to Indian ports. India established diplomatic relations with
Belgium in 1948 and there has been regular interaction at high levels
since then.

Political relations:

India and Belgium share common values of democracy, pluralism and rule
of law and are committed to multilateralism in international relations.
On the political side, India’s aim is to enhance interaction at the
highest political level. During the visit of EAM in September 2004 and
June 2005, he held detailed discussion with his Belgian counterpart Mr.
Karel de Gucht on matters of bilateral international regional
importance. Foreign Secretary Mr. Shyam Saran held in-depth discussions
with the Belgian side during his visit in June, 2005. In a significant
development Belgium has decided to co-sponsor the G-4 Resolution on UNSC
reforms.

Important Bilateral Treaties and Agreements, with brief notes:

• Agreement on Avoidance of Double Taxation- August 1997

• Bilateral Investment Protection Agreement signed between India
and BLEU in November 1997.

Senate
Finance and Economic Commission delegation led by Senator Jean
Marie de Decker

Jan 14-24,2005

HRH
Crown Prince Philippe led 285-member Economic Mission to India

March
12-19,05

Commercial and Economic Relations, with trade, aid and investment
details:

Commercial and Economic relations are governed by Agreement on Economic,
Industrial, Scientific and Technological Cooperation between BLEU and
India in March 1990 and other EU and WTO Agreements. Belgium has emerged
India’s second largest trade partners within EU with bilateral trade in
2004 at 6.49 billion euros, 75% of which is in diamonds. India’s aim is
to diversify bilateral trade which is dominated by diamonds to areas of
information and communication technology, pharmaceuticals, biotechnology
where there is a tremendous potential for synergy. A delegation from
Belgium led by the Chairman of the Senate Finance Commission visited
India in January 2004 to study India’s economic and financial policies.
At the popular level Belgium, but more so Antwerp, is known as the
world’s diamond trade centre to which the Indian community based there
has contributed greatly.

The
liberalization of the Indian economy in the 1990s aroused Belgian
interest in India. The initial interest translated into an increasing
number of official and business visits to India in recent years. Crown
Prince Philippe led three economic missions to India(1995,1998, 2005).
The visits generated enormous interest on either side resulting in
several viable deals in the form of joint ventures and technology
tie-ups. According to the Secretariat for Industrial Assistance(SIA)
Belgium’s total investment approvals into India for the period 1991-
Sep.,2004 touched a record figure of Rs. 46,402.5 million (approx. US $
1.2 billion), with 1998 being a particularly good year account for about
80% of this amount. The actual investment flows for this period,
however, have not kept pace with the approvals. There are an estimated
231 joint ventures, most in the small and medium 8 category. Belgium
Company Tractabael is the largest investor. BARCO and BEKAERT are
established in India for many decades. During the 2005 visit of the
Economic Mission, 5 MoUs were signed. CII signed 3 MOUs with Belgian
companies Agoria, VBO, Flanders Institute of Logistics. IBA Pharma of
Belgium and MK Ali Manekia, a non-resident Indian signed MoU for
research and development activities in the health sector. IBA Molecular
Imaging signed the MoU with Indian Diagnostic Laboratories of Dewang
Chand Agrawal for Molecular Research.

S&T Relations, cooperation in other fields such as Railways, Space, IT,

Biotechnology, Infrastructure, Mining etc:

A
Belgian software and satellite manufacturing company Verhaert signed a
contract with ISRO in April, 1998 for launching a 100 kg satellite
through PSLV-C3 in the year 2000. The satellite was subsequently
launched successfully from Sriharikota in August, 2001. This is the
first time that an European company has ever come to a commercial
agreement with ISRO for launching low orbit Satellites. An MOU for
cooperation in space technology was signed between ISRO and the
Techspace Aero during the Belgian Crown Prince’s visit in November,
1998. A seminar on cooperation in space sector and space related
technologies was held in Bangalore during the visit of Crown Prince
Philippe of Belgium in March, 2005. Belgian companies are participating
in EU’s Galileo project with which India is negotiating a cooperation
agreement.

Chairs in Universities on Indian Studies, South Asian Studies, etc., and
vice versa in Indian Universities, relevant Area Studies’ Centres in the
two countries:

SUBJECT

UNIVERSITY

India Study Centre established in 1996

University of Antwerp

Optional Course on Modern Indian
Studies commenced in February 2003

Katholiek University, Leuven

Hindi Chair, November 2004

Ghent University

Cultural Troupes – Incoming and Outgoing over last few years:

From India

A
bilateral Cultural Agreement was signed with Belgium in September, 1973.
A Cultural Exchange Programme(CEP) covering the years 1996-98 was signed
with the Flemish Community in March, 1996. An India Study Centre was set
up in Antwerp in 1996. There is a school of Indian classical music in
Brussels and that of Indian classical dance in Ghent, both run by
Belgian artists. Many Indian artists, even outside the CEP, visit
Belgium. Embassy is planning an important cultural event in 2006
focusing on India’s diverse and 9 composite culture. Under CEP, an
India-based ICCR –sponsored professor is currently teaching Hindi at the
Belgian University of Ghent. Several Indian students are studying in
Belgian universities, under scholarships provided by the Flemish/Belgian
governments. The following ICCR sponsored troupes have performed in
Belgium.

Pandit
Ravi Shankar

Pandit
Jasraj

Shri
Kelucharan Mohapatra

Ustad
Amjad Ali Khan

27-29
March, 2003

3-Member
Instrumental Sarod Group led by Shri Abhijit Roy Choudary

31st
May-2nd June, 2003

10-member Dhwani Kathak group led by Mrs. Vaswati Mishra

11-12
June, 2003

4-member Hindustani
vocal group led by Shri R. Fahimuddin Khan Dagar

4-6
October, 2003

11-Member Dance and Music Group of Rabindra Bharati University led
by Dr. Gauri Bhattacharya

The
Indian Council for Cultural Relations (ICCR), New Delhi, offers three
scholarships at the post-graduation levels to the Belgians. Similarly,
the Ministry of Flemish Community, Administration of the Higher
Education and Scientific Research offers three scholarships to the
Indian students. These exchanges have been going on regularly between
the two countries.

A
number of students on self-financing basis are also studying in the
University of Gent, University of Antwerp and University of Leuven.

Sister City relations with India:

There is a proposal for twinning of the cities of Antwerp & Surat.

Important streets, public places named after Indian leaders:

A
Gandhi statue is installed in Parc Marie Jose, Molenbeck, St. Jean,
Brussels where every year Gandhi Jayanti is held with participation by
the local Mayor and Indian community. City of Antwerp has a street named
after Mahatma Gandhi. There is a proposal for installation of Mahatma
Gandhi bust in Antwerp.

Types of visas issued, and visa details for officials, students,
business people, tourists, etc. from India:

There are two main types of visa: (1) Schengen visa 2) short-term
(tourist or business) or so-called C visa, and (3) long-term (student,
family reunification or immigration) or socalled D visa. Before applying
for a visa, the applicant has to submit an invitation letter, proof of
sufficient financial means (or a pledge of financial support by a
Belgian national), proof of air ticket reservation and accommodation
and, if possible, other supporting documents (such as a rough itinerary
in case of tourist visa.) If pledge of financial support is shown, make
sure that guarantor has enough financial means to make it valid, and
that this private person also provides you with the documents that prove
this (such as salary or bank statements for instance). The applicant may
also be requested to supply other supporting 10 documents. Most
documents will have to be originals, duly legalized by the competent
authorities. For more information contact Belgian Embassy, New Delhi at:
http://www.diplomatie.be/newdelhi/

Air links with India/Convenient Travel Routes:

The
approved route between India and Brussels is:

Delhi – Frankfurt(Air India) – Brussels (by foreign carrier)

Delhi- Paris-Brussels

Delhi- London-Brussels

Delhi-Paris(by air) and Paris-Brussels (by train)

Jet
Airways is expected to start its operations very soon and will fly
flights from India to

There are about 7,000 persons of Indian origin in Belgium. Indian
Communities are mainly in Antwerp and Brussels. There are about 250
families engaged in diamond trade in Antwerp. Many of the other Indians
living in Belgium are professionals employed with either multinational
companies or other professional organizations.

Important NRI/PIO Associations and their contact details:

There are more than 10 Indian associations. The leading ones are
Bhartiya Samaj, Antwerp Indian Association.